It seems many buyers who’ve been sitting on the sidelines may finally get in the game, according to Fannie Mae’s June 2013 National Housing Survey. The reason? The fear and expectation of both mortgage interest rates and housing prices going up.
The agency posted this on its website. “The spike in mortgage rate expectations this month seems to have had an impact on a number of the survey’s indicators and may increase housing activity in the near term by driving urgency to buy,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Consumers may recognize that today’s still favorable mortgage rates and homeownership affordability levels will recede over time. Given rising home and rental price expectations and improving personal financial attitudes, more prospective homebuyers may be deciding that now is the time to get off the fence.”
If you’re shopping for a home here are a few things to help you decide if now is the right time to buy.
A home is likely the largest purchase you’ll ever make so understanding what’s involved is vital. Low interest rates, markets filled with short sales and foreclosures, and a dwindling inventory of quality homes could make this the optimal time to buy.
However, it’s important to know exactly what you’ll need when closing escrow. Sometimes buyers don’t consider all the fees and are shocked when it’s time to pay. Here are some of the costs involved with buying a home.
You’ll want to hire a qualified real estate agent and that, of course, would be me! Some states, NJ included, require real estate attorneys to help with the transaction. An agent and/or a lawyer provide excellent expertise and knowledge, so it’s wise to enlist the help of these professionals as they know the ins and outs of the business and will help you avoid what could be very costly mistakes.
A home inspection is another fee that you’ll pay once you have decided on a home you want to buy. Sometimes a homeowner has already had a home inspection completed, but you’ll want to bring in your own home inspector to compare reports. This could cost several hundred dollars. If there are negative items found about the home and you can’t arrive at an agreement for either a credit or having the sellers fix the problems, then you may consider not buying the home.
Other fees that will come up include title search and insurance, and a recording fee. There can be others. Some of these fees can be negotiated and, perhaps, paid for by the seller. Talk it over with your agent. How much a seller is willing to pay for will depend on many factors including how quickly the home must be sold and how close your offer is to the listing price.
Make sure you have a reserve so that you can pay for any unexpected changes in your income or any maintenance issues that come up later with your home. A lot of times things come due all at once, so be sure to calculate a good amount of money to keep in an account that you will save for your home. When the time comes and the money is needed, you’ll give a huge sigh of relief and be glad you have this safety account.
A Licensed Realtor will be your best friend and can help you navigate through all of this red tape and more. Please contact me through my website at: http://www.NormaSellsNJHomes.com